India among world’s top 20 real estate investment markets

A latest study by Cushman & Wakefield has ranked India 20th in the list of world’s top real estate investment markets with investment volume of $3.4 billion in 2012.

Notwithstanding the gloomy scenario, the report had some positive news for the real estate sector stating investment volumes rallied in the fourth quarter signalling the beginning of real momentum and a return of confidence in the market which could see volumes this year increase 14 per cent to exceed $1 trillion mark for the first time since 2007.

China was at the top position with an investment of $304.1 billion, followed by the U.S. ($267.1 billion) and the U.K. ($56.3 billion). The consultant said the global property investment market grew by 6 per cent in 2012 to $929 billion and was expected to cross $1 trillion mark in 2013, the first time since 2007. “India was (20th) among the top 20 real estate investment markets globally with investment volume of Rs.19,000 crore ($3,466 million) recorded in 2012,’’ the company said in a statement issued with the latest assessment.

Majority of the investment in India was through institutional sales (67 per cent) while the remaining were through private equity (PE) investments (33 per cent). Investments in institutional sales saw a decline of 37 per cent over last year, but private equity investment in India rose by 7 per cent in 2012 to Rs.6,200 crore. Bangalore saw the highest number and value of private equity investments at Rs.3,250 crore in 2012, posting more than double the investment over the previous year, followed by Mumbai with Rs.1,300 crore and National Capital Region (NCR) Rs.700 crore investments.

The report states that the global property investment market recorded a modest 6 per cent rise in activity during 2012 with volumes reaching $929 billion.